Operators See ‘Glimmer of Relief’ As Staffing Concerns Shrink

While the ever-present staffing shortages have continued to challenge operators across the industry, some indications may show a “glimmer of relief” as the most severe workforce woes could be behind the industry.

Just 9% of senior care operators reported severe staffing shortages at their organization — down from 25% of respondents who reported the same back in March, according to the most recent NIC Executive Insights Survey collected between Sept. 19 and Oct. 16.

The National Investment Center for Seniors Housing & Care survey collected responses from 58 owners and executives in the skilled nursing and senior housing sectors. The majority of respondents (37) reported having a portfolio of 10 or fewer properties, while 11 reported a portfolio of between 11 and 25 properties, and 10 said they have at least 26 properties.

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“While this may be a promising sign of relief, it’s important to remember that staffing and labor challenges do still exist,” NIC Senior Principal Ryan Brooks told Skilled Nursing News.

Still, 24% of operators have had to limit admissions due to staffing shortages, according to the data, and attracting community and caregiving staff was the second most cited challenge operators faced (79%) followed by staff turnover (67%).

The seasonally adjusted number of employees at skilled nursing properties is up 18,300 jobs from its pandemic low of in March, according to data from the Bureau of Labor Statistics (BLS). Despite these recent job gains, employment in skilled nursing is still 220,200 jobs below pre-pandemic levels.

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When asked what contributed to staffing shortages, senior care executives said competition from other industries (25%), an inability to hire nurses (21%), competition from staffing agencies (17%) and an inability to fill nurse aide positions (15%) all played a role.

The data aligns with statistics American Health Care Association/National Center for Assisted Living (AHCA/NCAL) President and CEO Mark Parkinson provided during his opening remarks at the group’s annual convention.

Parkinson said 30% of skilled nursing providers are not using agency staffing at all.

Operator expenses continue to climb

An overwhelming majority of operators, more than 90% of respondents, indicated the biggest challenge at this time is rising expenses.

The NIC data showed that 38% of nursing care respondents noted their change in the cost of property insurance increased significantly, compared to two-fifths of independent living operators, 30% of assisted living operators and 25% of memory care operators.

Senior care executives also saw a rise in professional liability insurance compared to pre-Covid statistics. Specifically, 52% of nursing care operators reported a slight or significant increase, according to the NIC survey data.

“The cost of all these goods and services has gone up … insurance is just another one that’s following that same pattern. You’re squeezing a balloon to some degree and over the summer and over the spring, people’s attention was on staffing and retention and recruiting,” Brooks said.

Among the reasons why operators believe both property and professional liability insurance increased include the market conditions, the overall macroeconomic environment, inflation, Covid-19 and insurers dropping out of the market resulting in less competition.

Reporter Amy Stulick contributed to this article.

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